GBP/USD Hikes after the Release of Positive Jobs Report
After the initial drop in the USD, a sudden hike was evidenced in it when the recent Jobs report came out. As DXY index spooked from 94.99 to 95.23, the price of the USD/GBP also got a little boost. As per the latest media sources, after the Jobs report came out for last month (July), it is accurate to say that the US economy is growing persistently at a steady pace.
Although the headline flashed below the expectation of +193K at +157K, still the report data was enough to pick up the slack. As per the Atlanta Fed’s Job Calculator, the US economy only needs to add +106K jobs per month to keep the rate of the unemployment rate at 4.0% and even lower per month. The good news, however, is that the jobs report released for the month of July has exceeded the minimum estimated amount suggested by the Atlanta Fed’s Job Calculator.
Other Aspects of the US July’s Jobs Report
Adding on, the rest of the aspects have also been seen to remain steady. Wage growth remained at +2.7% and the CPI landed at +2.9%. Although the numbers are convincing still there has been evidence that shows the real wages have actually taken a negative turn.
Following the release of the data today, Fed fund future has been estimated to rise at 25-bps rate in the coming month of September and there is 64 percent chance of the fourth hike in December 2018.
After the drop evidenced in the Dollar Index (DXY) from 95.15 to 94.99, the price of USD crashed last month, but with this months Job’s report, the USD has managed to climb back and have recouped all the losses.
This is a good news for the US economy and the best part is that the numbers depicted in the July’s Job Report have clearly shown progress and have managed to stay ahead of the numbers calculated by the Atlanta Fed’s Job Calculator. This hike in the price of the GBP/USD has occurred on account of the July’s Job report. It has been presumed that the US economy will keep growing on a steady pace and is, therefore, a good news for the country after the hit it took with the drop in the price of USD recently.